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Square Payroll: Getting Started with On-Demand Pay

Overview

With Square Payroll, you can provide your eligible team members with early access to a portion of their earned wages before the pay period is over. With On-Demand Pay, your team can choose to access their earnings before the pay period ends without the need to edit your pay period or change the way you process payroll.

When a team member clocks out through the Square Team app or Square Point of Sale, they will receive an email with a summary of their hours worked and wages earned for their shift. With the On-Demand Pay benefit, eligible team member can access these funds by tapping the button in the email or in their Square Team app and choosing how much of their wages they want to access. Team members can transfer up to 50% of their earned wages, up to $200 per pay period and have their money sent instantly to Cash App or a linked debit card. If a team member transfers wages at any point during the pay period using On-Demand Pay, wages will be adjusted automatically to pay them the remainder of their earned wages for the pay period when you run payroll regularly without the need for manual calculation.

Note: On-Demand Pay requires your team to be paid by direct deposit and they must log their hours with Square Timecards. On-Demand Pay is available to team members whose employers pay W-2 employees or both W-2 employees and 1099 contractors. This benefit is not available to your team if you only pay 1099 contractors at this time. Team members must be at least 18 years of age in order to use On-Demand Pay. 

You can learn more about On-Demand Pay on our FAQ page.

Pricing and fees

On-Demand Pay is free for employers and comes at no additional cost to your Payroll subscription.

Your team can opt to have their wages sent to their Cash App for free or sent to a debit card for a fee of 1% the amount of wages accessed. Team members can transfer up to 50% of their earned wages, up to $200 between pay periods. The fee will never be more than $2 per transfer.

Transfer fees and options differ between states and this feature is not currently available in all 50 states. For each state that On-Demand Pay is available in, you can see additional fee and transfer information below. Unfortunately, On-Demand Pay is not available in New York or New Jersey at this time.

State Transfer to Cash App for free Transfer to debit card for 1% fee
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Mexico
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virgnia
Wisconsin
Wyoming

Enable On-Demand Pay

To enable On-Demand Pay for your team:

  1. Log in to your online Square Dashboard and navigate to Payroll > Settings.

  2. Click on the Payroll Settings tab and scroll to On-Demand Pay Benefits.

  3. Choose a frequency. You can either provide access or block access to On-Demand Pay for your team.

You can disable your team's access to On-Demand Pay at any time.

Team member access through the Team App

Eligible team members can access their earned wages early with On-Demand Pay through their Square Team app, and the transfer will be sent to their Cash App account or to their linked debit card, depending on product availability in the state in which your team is located.

To access On-Demand Pay, team members can take the following steps:

  1. On the Square Team App Home page, select Learn More under Earnings Available Now.

  2. If the team member has had prior direct deposits sent to their Cash App, select Continue. If the team member has not received direct deposits to Cash App, select Try it now.

  3. Choose the amount to transfer > Continue. If the team member does not have their Cash account synced to their Team App profile, they will be prompted to provide their $Cashtag, phone number or email address, and confirmation code. This is optional.

  4. Confirm the transfer details and press Done once the transfer is complete.

Once the team member initiates the transfer, the amount of wages available to transfer through On-Demand Pay will update on the Square Team app Home page.

Learn more about the Square Team app.

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